Rent Control Back In Minneapolis Mayoral Race

Over the weekend, every mom-and-pop landlord in the city of Minneapolis should have heard a loud alarm when the DFL endorsed democratic socialist Omar Fateh for mayor.

This is important to housing providers because Fateh supports a rent freeze and an affordable housing push. What’s the difference between a freeze and rent control?

A rent freeze is usually reserved for crisis situations, like a pandemic or recession, and are meant to be a temporary measure. While in place, landlords may not increase rent at all; not even by a city-mandated amount. These freezes may also come with eviction moratoriums.

Rent freezes can cause financial hardships for small landlords, as costs for insurance, property taxes and maintenance continue to rise. As a result, many owners may decide to sell, which in turn floods the market with inventory, causing prices to decline.

Fateh won the endorsement over Mayor Jacob Frey, who is seeking a third term. He is currently a Minnesota state senator.

While Frey has his detractors, he has long been a vocal opponent of rent control. In 2021, he vetoed a resident-led charter amendment that would have allowed voters to put rent control policies directly on the ballot via a referendum. The Minneapolis City Council failed to overturn this veto. He did, however, support an ordinance that would have allow the council to draft a rent control initiative to put on a city-wide ballot.

It is the first time the DLF has endorsed a Minneapolis mayoral candidate since 1997. The endorsement does not preclude Frey from running. In fact, Frey also finished second in the 2017 and 2021 DFL conventions.